1. Payments of $845.00 are made into a fund at the beginning of every month for 5.25 years. If the fund earns interest at 8.4% compounded monthly, what will the interest earnedafter 5.25 years?

• $53,235
• $13,850
• $67,085
• $845

2.Payments of $500.00 are made at the beginning of each month for four years. The interest rate is 4.5% compounded monthly.

Calculate the number of years in the term.

• None
• 4
• 48
• 12

3.Calculate the PMT at the beginning of every three months for 15 years that accumulates to $200 000.00 at 4% compounded quarterly.

• $2,250
• $1,250
• $2,425
• None

4.Classify the annuity.

Case study: Hector deposits $2450at the beginning of every three months for 15 years to accumulate $200 000.00 at4% compounded quarterly.

• general annuity due
• general ordinary annuity
• simple annuity due
• simple ordinary annuity

5.Classify the annuity.

Case study:$20,000 invested today at 6% compounded annually will provide a scholarship of $1,200 at the end of every year forever.

• deferred annuity
• periodic annuity
• perpetuity annuity
• ordinary annuity

6.Solving for general annuities due is the same asfor ordinary general annuities with the addition of the following:

• (1+i) in the formula
• (1+n) in the formula
• (1+p) in the formula
• (1+j) in the formula